LOGISTICS
management solution , companies can extend operations with temporary fulfilment locations during peak periods .
“ During one Thanksgiving , we set up two pop‐up distribution centres for a single client , and they accounted for 10 % of the overall order fulfilment volume for the week .”
Retailers testing demand with pop-up shops Steele also says that brands are using pop‐up stores as a means to test how consumers interact with their products , and better understand what drives sales . She also reveals that e-commerce brands - such as Wayfair , the US-based homes and living e-retailer - are now using the pop-up model to better understand their customers .
“ Wayfair has no physical presence , and they realised this is a gap in their understanding of consumers ,” says Steele . “ So in response , they opened pop‐up stores during the holiday season , to test how consumers interact with their brand and products offline .”
She adds that Wayfair and e-tailers like them use such location-specific data to fine-tune their merchandising strategy .
Steele also says pop-up fulfilment is being used by retailers with a bricks and mortar presence to test various locations , before making more permanent commitments .
“ Today ’ s non-traditional lease terms offer location flexibility that was unheard just a few years ago ,” she says . “ Short-term leases , with an option to extend , are becoming standard practice .” supplychaindigital . com 71